Cuban Assets Control Regulations, 46323-46325 [2024-11618]
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Federal Register / Vol. 89, No. 104 / Wednesday, May 29, 2024 / Rules and Regulations
46323
TABLE 3 TO § 401.43—ADDITIONAL FEES
Proposed action
Fee
Emergency Approval Under 18 CFR 401.40 ....................
Late Filed Renewal Surcharge .........................................
Modification of a DRBC Approval .....................................
$5,000 .............................................................................
$2,000.
At Executive Director’s discretion, Docket Application
Fee for the appropriate project type.
1 $1,278.
1 $1,917.
Name change ...................................................................
Change of Ownership .......................................................
1 Subject
cross references and one updated
definition.
DATES:
3. The authority citation for part 420
continues to read as follows:
■
4. In § 420.41, revise paragraphs (a)
and (b) to read as follows:
■
Schedule of water charges.
*
*
*
*
*
(a) $102 per million gallons for
consumptive use, subject to paragraph
(c) of this section; and
(b) $1.02 per million gallons for nonconsumptive use, subject to paragraph
(c) of this section.
*
*
*
*
*
Dated: May 21, 2024.
Pamela M. Bush,
Assistant General Counsel and Commission
Secretary.
[FR Doc. 2024–11661 Filed 5–28–24; 8:45 am]
BILLING CODE P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 515
Cuban Assets Control Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is amending the Cuban
Assets Control Regulations (the
‘‘Regulations’’) to further implement
elements of the policy announced by the
Administration on May 16, 2022, to
increase support for the Cuban people.
Among other things, these amendments
increase support for internet freedom for
the Cuban people and independent
Cuban private sector entrepreneurs by
expanding authorizations for internetbased services and a range of financial
transactions. These amendments also
include several additional or updated
SUMMARY:
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This rule is effective May 29,
2024.
Authority: Delaware River Basin Compact,
75 Stat. 688.
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Alternative Review Fee.
Alternative Review Fee.
to annual adjustment in accordance with paragraph (c) of this section.
PART 420—BASIN REGULATIONS—
WATER SUPPLY CHARGES
§ 420.41
Fee maximum
FOR FURTHER INFORMATION CONTACT:
OFAC: Assistant Director for Licensing,
202–622–2480; Assistant Director for
Regulatory Affairs, 202–622–4855; or
Assistant Director for Sanctions
Compliance & Evaluation, 202–622–
2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional
information concerning OFAC are
available on OFAC’s website:
www.treas.gov/ofac.
Background
The Department of the Treasury
issued the Cuban Assets Control
Regulations, 31 CFR part 515 (the
‘‘Regulations’’), on July 8, 1963 under
the Trading With the Enemy Act (50
U.S.C. 4301–41). OFAC has amended
the Regulations on numerous occasions.
As with prior amendments, OFAC has
ensured that these amendments are
consistent with the Cuban Liberty and
Democracy Solidarity (LIBERTAD) Act
of 1996, 22 U.S.C. 6021–6091 and other
applicable authorities. Most recently, on
June 9, 2022, OFAC amended the
Regulations to implement certain policy
measures announced by the
Administration on May 16, 2022 to
increase support for the Cuban people.
In this document, OFAC, in
consultation with the Department of
State, is taking additional actions to
further implement the Administration’s
Cuba policy measures announced on
May 16, 2022, as set forth in more detail
below.
Internet-Based Services. OFAC is
amending § 515.578(a)(1) to provide
additional examples of authorized
services incident to the exchange of
communications over the internet and
to include and expand certain services
to support the exchange of such
communications. For example, OFAC’s
amendment to § 515.578(a)(1) clarifies
that cloud-based services may be
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Fmt 4700
Sfmt 4700
exported to Cuba to support the
exchange of communications over the
internet. OFAC is amending
§ 515.578(a)(2) to expand the
authorization for services (including
training) to install, repair, or replace
certain items, including by removing the
requirement that referenced items fall
within specific export control
classification parameters. OFAC is
retaining the requirement in
§ 515.578(a)(2) that for services
(including training) related to any items
subject to the Export Administration
Regulations, 15 CFR parts 730 through
774, such items must be licensed or
otherwise authorized by the Department
of Commerce for exportation or
reexportation to Cuba. OFAC is also
amending § 515.578(d) and (e) to
authorize the export or reexport of
Cuban-origin software and mobile
applications, respectively, from the
United States to third countries.
Definition of Independent Private
Sector Entrepreneurs. OFAC is
amending § 515.340 by replacing the
term ‘‘self-employed individual’’ with
the term ‘‘independent private sector
entrepreneur’’ and limiting the term to
exclude a Cuban national who is a
prohibited official of the Government of
Cuba, as defined in § 515.337, or a
member of the Cuban Communist Party,
as defined in § 515.338. The term
continues to include self-employed
individuals (cuentapropistas), such as
owners or employees of a private
business or a sole proprietorship, but
the amended definition now also
includes cooperatives and other private
businesses wholly owned by or
consisting solely of such individuals.
OFAC is also amending § 515.340 to
specify that private businesses or sole
proprietorships of up to 100 employees
are covered by the term ‘‘independent
private sector entrepreneur.’’ OFAC is
also replacing the term ‘‘independent
Cuban entrepreneurs’’ with
‘‘independent private sector
entrepreneurs’’ in § 515.582, replacing
the term ‘‘self-employed individuals’’
with ‘‘independent private sector
entrepreneurs’’ and adding farms of up
to 100 employees as an example of
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Federal Register / Vol. 89, No. 104 / Wednesday, May 29, 2024 / Rules and Regulations
private businesses in § 515.570, and
making conforming changes to
§ 515.421.
U.S. Bank Accounts for Independent
Private Sector Entrepreneurs. OFAC is
amending § 515.584(h) to authorize
independent private sector
entrepreneurs in Cuba, as defined in
§ 515.340, to maintain and use a U.S.
bank account to conduct authorized or
exempt transactions.
‘‘U-Turn’’ Transactions. OFAC is
amending § 515.584(d) to reinstate an
authorization for ‘‘U-turn’’ transactions
to help the Cuban people, including
independent private sector
entrepreneurs, by facilitating
remittances and payments for
authorized transactions in the Cuban
private sector. This amendment allows
any banking institution, as defined in
§ 515.314, that is a person subject to
U.S. jurisdiction to process funds
transfers in which Cuba or a Cuban
national has an interest if the funds
transfers originate and terminate outside
the United States, provided that neither
the originator nor the beneficiary is a
person subject to U.S. jurisdiction.
Transactions through the U.S. financial
system that do not meet these criteria,
including all transactions where the
originator or beneficiary is a person
subject to U.S. jurisdiction, remain
prohibited unless otherwise authorized
or exempt under the Regulations. OFAC
is also amending § 515.584(e) to
authorize the unblocking and return of
any transfer that would have been
authorized pursuant to the reinstated
authorization. OFAC is making a
conforming change by adding a
reference to § 515.584(d) in the note to
§ 515.209.
Telecommunications-Related
Transactions Reporting Requirements.
OFAC is amending § 515.542(g) to
replace the current fax or mail reporting
requirement with a requirement to email
reports to OFACReport@treasury.gov.
OFAC is also adding a sentence to
§ 515.542(g) to clarify that the reporting
requirement in paragraph (g) applies to
entities engaging in transactions to
provide telecommunication services
pursuant to paragraph (b), (c), or (d),
and not banking institutions, as defined
in § 515.314, processing payments on
behalf of such providers.
Educational Activities. OFAC is
amending § 515.565(a) to correct a
typographical error in the June 9, 2022
amendment to the Regulations and
restore language in the general license
in § 515.565(a) authorizing transactions
beyond the travel-related transactions
set forth in § 515.560(c).
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Public Participation
Subpart C—General Definitions
Because the Regulations involve a
foreign affairs function, the provisions
of Executive Order 12866 of September
30, 1993, ‘‘Regulatory Planning and
Review’’ (58 FR 51735, October 4, 1993),
and the Administrative Procedure Act (5
U.S.C. 553) requiring notice of proposed
rulemaking, opportunity for public
participation, and delay in effective date
are inapplicable. Because no notice of
proposed rulemaking is required for this
rule, the Regulatory Flexibility Act (5
U.S.C. 601–612) does not apply.
■
■
■
Paperwork Reduction Act
The collections of information related
to the Regulations are contained in 31
CFR part 501 (the ‘‘Reporting,
Procedures and Penalties Regulations’’)
and § 515.572. Pursuant to the
Paperwork Reduction Act of 1995 (44
U.S.C. 3507), those collections of
information have been approved by the
Office of Management and Budget under
control numbers 1505–0164, 1505–0167,
and 1505–0168. An agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless the collection of
information displays a valid control
number.
List of Subjects in 31 CFR Part 515
Administrative practice and
procedure, Banks, banking, Blocking of
assets, Cuba, Credit, Foreign trade,
internet, Penalties, Reporting and
recordkeeping requirements, Sanctions,
Services.
For the reasons set forth in the
preamble, OFAC amends 31 CFR part
515 as follows:
PART 515—CUBAN ASSETS
CONTROL REGULATIONS
1. The authority citation for part 515
continues to read as follows:
■
Authority: 22 U.S.C. 2370(a), 6001–6010,
7201–7211; 31 U.S.C. 321(b); 50 U.S.C. 4301–
4341; Pub. L. 101–410, 104 Stat. 890 (28
U.S.C. 2461 note); 22 U.S.C. 6021–6091; Pub.
L. 105–277, 112 Stat. 2681; Pub. L. 111–8,
123 Stat. 524; Pub. L. 111–117, 123 Stat.
3034; E.O. 9989, 13 FR 4891, 3 CFR, 1943–
1948 Comp., p. 748; Proc. 3447, 27 FR 1085,
3 CFR, 1959–1963 Comp., p. 157; E.O. 12854,
58 FR 36587, 3 CFR, 1993 Comp., p. 614.
Subpart B—Prohibitions
§ 515.209
[Amended]
2. Amend § 515.209 in note 1 to the
section by adding ‘‘§ 515.584(d) relating
to funds transfers or’’ before the text
‘‘§ 515.584(g)’’.
■
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3. Amend § 515.340 by:
a. Revising the section heading;
b. In the introductory text, removing
‘‘self-employed individual means a
Cuban national who is’’ and adding in
its place ‘‘independent private sector
entrepreneur means a Cuban national
who is not a prohibited official of the
Government of Cuba, as defined in
§ 515.337, or a prohibited member of the
Cuban Communist Party, as defined in
§ 515.338, and is’’;
■ c. Revising and republishing
paragraph (a);
■ d. In paragraph (c), removing the word
‘‘or’’ after the semicolon;
■ e. In paragraph (d), removing the
period and adding in its place ‘‘; or’’;
and
■ f. Adding paragraph (e).
The revisions and addition read as
follows:
§ 515.340 Independent private sector
entrepreneur.
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*
*
*
(a) An owner, including a selfemployed individual (cuentapropista),
or employee of a small private business
entity, private cooperative, or a sole
proprietorship located in Cuba, in each
case of up to 100 employees;
*
*
*
*
*
(e) A private cooperative or small
private business entity located in Cuba
of up to 100 employees that is owned
only by individuals described in
paragraphs (a) through (d) of this
section.
Subpart D—Interpretations
§ 515.421
[Amended]
4. Amend § 515.421 in paragraph
(b)(2) by removing ‘‘Cuban’’ and adding
in its place ‘‘private sector’’.
■
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
5. Amend § 515.542 in paragraph (g)
by:
■ a. Removing ‘‘faxed to 202/622–6931
or mailed to the Office of Foreign Assets
Control, Attn: Regulatory Affairs
Division, 1500 Pennsylvania Avenue
NW, Annex, Washington, DC 20220’’
and adding in its place ‘‘emailed to
OFACReport@treasury.gov’’; and
■ b. Adding a sentence at the end of the
paragraph.
The addition reads as follows:
■
§ 515.542 Mail and telecommunicationsrelated transactions.
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(g) * * * The reporting requirement
in this paragraph (g) applies only to the
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Federal Register / Vol. 89, No. 104 / Wednesday, May 29, 2024 / Rules and Regulations
non-banking institution entity subject to
U.S. jurisdiction relying upon paragraph
(b), (c), or (d) of this section to provide
telecommunications services.
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*
*
*
*
§ 515.565
[Amended]
6. Amend § 515.565 in paragraph (a)
introductory text by adding
‘‘transactions, including’’ after ‘‘engage
in’’.
■
§ 515.570
[Amended]
7. Amend § 515.570 in paragraph
(g)(3) by:
■ a. Adding ‘‘in Cuba, including farms
of up to 100 employees’’ after
‘‘businesses’’; and
■ b. Removing ‘‘by self-employed
individuals’’ and adding in its place ‘‘of
Cuba by independent private sector
entrepreneurs’’.
■ 8. Amend § 515.578 by:
■ a. Revising paragraphs (a)(1) and (2);
■ b. In paragraph (a)(3):
■ i. Removing ‘‘The’’ at the beginning of
the sentence and add in its place ‘‘To
the extent not authorized by § 515.533
or § 515.560, the’’; and
■ ii. Removing ‘‘(2)(i)–(iii)’’ and add in
its place ‘‘(a)(2)’’.
■ c. Redesignating Note to
§ 515.578(b)(2) as Note 3 to
§ 515.578(b)(2);
■ d. Revising paragraphs (d) and (e); and
■ e. Redesignating the note at the end of
the section as Note 5 to § 515.578.
The revisions read as follows:
■
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§ 515.578 Exportation, reexportation, and
importation of certain internet-based
services; importation of software.
(a) * * *
(1) Certain internet-based services.
The exportation or reexportation,
directly or indirectly, from the United
States or by a person subject to U.S.
jurisdiction to Cuba of the following
services:
(i) Services incident to the exchange
of communications over the internet,
such as instant messaging, chat and
email, social networking, sharing of
photos and movies, web browsing,
blogging, web hosting provided that it is
not for the promotion of tourism,
domain name registration services,
social media platforms, collaboration
platforms, video conferencing, e-gaming
and e-learning platforms, automated
translation, web maps, and user
authentication services; and
(ii) Services to support the exchange
of communications over the internet,
such as software design, business
consulting, information technology
management services, and cloud-based
services, to support services described
in paragraph (a)(1)(i) of this section.
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(2) Services related to certain
exportations and reexportations. To the
extent not authorized by § 515.533, the
exportation or reexportation of services,
including training, to install, repair, or
replace items related to
communications, or items used to
develop software that improves the free
flow of information or that will support
private sector activities in Cuba
consistent with the export or reexport
licensing policy of the Department of
Commerce, provided that any such item
subject to the Export Administration
Regulations, 15 CFR parts 730 through
774, is licensed or otherwise authorized
by the Department of Commerce for
exportation or reexportation to Cuba.
*
*
*
*
*
(d) Software. The importation into the
United States, and the exportation or
reexportation from the United States to
third countries, of Cuban-origin
software is authorized.
(e) Mobile applications. (1) The
importation into the United States, and
the exportation or reexportation from
the United States to third countries, of
Cuban-origin mobile applications is
authorized.
Note 4 to § 515.578(e)(1): This paragraph
(e)(1) does not authorize U.S.-owned or
-controlled firms in third countries to import
goods of Cuban origin into the authorized
trade zone. See § 515.559.
(2) The employment of Cuban
nationals to develop mobile
applications is authorized.
*
*
*
*
*
§ 515.582
[Amended]
9. Amend § 515.582 by:
a. In the section heading and
introductory text, removing ‘‘Cuban’’
and adding in its place ‘‘private sector’’;
and
■ b. In the introductory text, removing
‘‘entrepreneurs as’’ and adding in its
place ‘‘entrepreneurs, as defined in
§ 515.340. The list of goods and services
eligible for importation under this
section is’’.
■ 10. Amend § 515.584 by:
■ a. In paragraph (d), removing ‘‘reject’’
and adding in its place ‘‘process’’;
■ b. In paragraph (e), in the first
sentence, adding ‘‘paragraph (d) of this
section,’’ after ‘‘processed pursuant to’’
and adding a comma after
‘‘§ 515.562(b)’’;
■ c. Adding a heading to paragraph (h)
and redesignating the text of paragraph
(h) as paragraph (h)(1); and
■ d. Adding paragraph (h)(2).
The additions read as follows:
■
■
§ 515.584 Certain financial transactions
involving Cuba.
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*
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46325
(h) Opening and maintaining bank
accounts for certain Cuban nationals.
* * *
(2) Any banking institution, as
defined in § 515.314, that is a person
subject to U.S. jurisdiction is authorized
to open and maintain accounts solely in
the name of a Cuban national who is an
independent private sector
entrepreneur, as defined in § 515.340,
for the purposes of conducting
transactions authorized pursuant to, or
exempt from the prohibitions of, this
part.
Bradley T. Smith,
Director, Office of Foreign Assets Control.
[FR Doc. 2024–11618 Filed 5–28–24; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 100
[Docket No. USCG–2024–0403]
Special Local Regulation; Marine
Events Within the Eleventh Coast
Guard District—Great Western Tube
Float
Coast Guard, DHS.
Notification of enforcement of
regulation.
AGENCY:
ACTION:
The Coast Guard will enforce
the Great Western Tube Float special
local regulation on the waters of Parker,
Arizona on June 8, 2024. This special
local regulation is necessary to provide
for the safety of the participants, crew,
sponsor vessels, and general users of the
waterway. During the enforcement
period, persons and vessels are
prohibited from entering, transiting
through, or anchoring within this
regulated area unless authorized by the
Captain of the Port, or his designated
representative.
SUMMARY:
The regulations in 33 CFR
100.1102 will be enforced from 7 a.m.
until 5 p.m., on June 8, 2024 for the
location described in Item No. 9 in
Table 1 to § 100.1102.
FOR FURTHER INFORMATION CONTACT: If
you have questions about this
notification of enforcement, call or
email Lieutenant Shelley Turner,
Waterways Management, U.S. Coast
Guard Sector San Diego, CA; telephone
619–278–7656, email MarineEventsSD@
uscg.mil.
SUPPLEMENTARY INFORMATION: The Coast
Guard will enforce the special local
regulations in 33 CFR 100.1102 for the
DATES:
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]]>Agencies
[Federal Register Volume 89, Number 104 (Wednesday, May 29, 2024)]
[Rules and Regulations]
[Pages 46323-46325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11618]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 515
Cuban Assets Control Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is amending the Cuban Assets Control Regulations (the
``Regulations'') to further implement elements of the policy announced
by the Administration on May 16, 2022, to increase support for the
Cuban people. Among other things, these amendments increase support for
internet freedom for the Cuban people and independent Cuban private
sector entrepreneurs by expanding authorizations for internet-based
services and a range of financial transactions. These amendments also
include several additional or updated cross references and one updated
definition.
DATES: This rule is effective May 29, 2024.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs,
202-622-4855; or Assistant Director for Sanctions Compliance &
Evaluation, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: www.treas.gov/ofac.
Background
The Department of the Treasury issued the Cuban Assets Control
Regulations, 31 CFR part 515 (the ``Regulations''), on July 8, 1963
under the Trading With the Enemy Act (50 U.S.C. 4301-41). OFAC has
amended the Regulations on numerous occasions. As with prior
amendments, OFAC has ensured that these amendments are consistent with
the Cuban Liberty and Democracy Solidarity (LIBERTAD) Act of 1996, 22
U.S.C. 6021-6091 and other applicable authorities. Most recently, on
June 9, 2022, OFAC amended the Regulations to implement certain policy
measures announced by the Administration on May 16, 2022 to increase
support for the Cuban people. In this document, OFAC, in consultation
with the Department of State, is taking additional actions to further
implement the Administration's Cuba policy measures announced on May
16, 2022, as set forth in more detail below.
Internet-Based Services. OFAC is amending Sec. 515.578(a)(1) to
provide additional examples of authorized services incident to the
exchange of communications over the internet and to include and expand
certain services to support the exchange of such communications. For
example, OFAC's amendment to Sec. 515.578(a)(1) clarifies that cloud-
based services may be exported to Cuba to support the exchange of
communications over the internet. OFAC is amending Sec. 515.578(a)(2)
to expand the authorization for services (including training) to
install, repair, or replace certain items, including by removing the
requirement that referenced items fall within specific export control
classification parameters. OFAC is retaining the requirement in Sec.
515.578(a)(2) that for services (including training) related to any
items subject to the Export Administration Regulations, 15 CFR parts
730 through 774, such items must be licensed or otherwise authorized by
the Department of Commerce for exportation or reexportation to Cuba.
OFAC is also amending Sec. 515.578(d) and (e) to authorize the export
or reexport of Cuban-origin software and mobile applications,
respectively, from the United States to third countries.
Definition of Independent Private Sector Entrepreneurs. OFAC is
amending Sec. 515.340 by replacing the term ``self-employed
individual'' with the term ``independent private sector entrepreneur''
and limiting the term to exclude a Cuban national who is a prohibited
official of the Government of Cuba, as defined in Sec. 515.337, or a
member of the Cuban Communist Party, as defined in Sec. 515.338. The
term continues to include self-employed individuals (cuentapropistas),
such as owners or employees of a private business or a sole
proprietorship, but the amended definition now also includes
cooperatives and other private businesses wholly owned by or consisting
solely of such individuals. OFAC is also amending Sec. 515.340 to
specify that private businesses or sole proprietorships of up to 100
employees are covered by the term ``independent private sector
entrepreneur.'' OFAC is also replacing the term ``independent Cuban
entrepreneurs'' with ``independent private sector entrepreneurs'' in
Sec. 515.582, replacing the term ``self-employed individuals'' with
``independent private sector entrepreneurs'' and adding farms of up to
100 employees as an example of
[[Page 46324]]
private businesses in Sec. 515.570, and making conforming changes to
Sec. 515.421.
U.S. Bank Accounts for Independent Private Sector Entrepreneurs.
OFAC is amending Sec. 515.584(h) to authorize independent private
sector entrepreneurs in Cuba, as defined in Sec. 515.340, to maintain
and use a U.S. bank account to conduct authorized or exempt
transactions.
``U-Turn'' Transactions. OFAC is amending Sec. 515.584(d) to
reinstate an authorization for ``U-turn'' transactions to help the
Cuban people, including independent private sector entrepreneurs, by
facilitating remittances and payments for authorized transactions in
the Cuban private sector. This amendment allows any banking
institution, as defined in Sec. 515.314, that is a person subject to
U.S. jurisdiction to process funds transfers in which Cuba or a Cuban
national has an interest if the funds transfers originate and terminate
outside the United States, provided that neither the originator nor the
beneficiary is a person subject to U.S. jurisdiction. Transactions
through the U.S. financial system that do not meet these criteria,
including all transactions where the originator or beneficiary is a
person subject to U.S. jurisdiction, remain prohibited unless otherwise
authorized or exempt under the Regulations. OFAC is also amending Sec.
515.584(e) to authorize the unblocking and return of any transfer that
would have been authorized pursuant to the reinstated authorization.
OFAC is making a conforming change by adding a reference to Sec.
515.584(d) in the note to Sec. 515.209.
Telecommunications-Related Transactions Reporting Requirements.
OFAC is amending Sec. 515.542(g) to replace the current fax or mail
reporting requirement with a requirement to email reports to
[email protected]. OFAC is also adding a sentence to Sec.
515.542(g) to clarify that the reporting requirement in paragraph (g)
applies to entities engaging in transactions to provide
telecommunication services pursuant to paragraph (b), (c), or (d), and
not banking institutions, as defined in Sec. 515.314, processing
payments on behalf of such providers.
Educational Activities. OFAC is amending Sec. 515.565(a) to
correct a typographical error in the June 9, 2022 amendment to the
Regulations and restore language in the general license in Sec.
515.565(a) authorizing transactions beyond the travel-related
transactions set forth in Sec. 515.560(c).
Public Participation
Because the Regulations involve a foreign affairs function, the
provisions of Executive Order 12866 of September 30, 1993, ``Regulatory
Planning and Review'' (58 FR 51735, October 4, 1993), and the
Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date are inapplicable. Because no notice of proposed
rulemaking is required for this rule, the Regulatory Flexibility Act (5
U.S.C. 601-612) does not apply.
Paperwork Reduction Act
The collections of information related to the Regulations are
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties
Regulations'') and Sec. 515.572. Pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507), those collections of information have
been approved by the Office of Management and Budget under control
numbers 1505-0164, 1505-0167, and 1505-0168. An agency may not conduct
or sponsor, and a person is not required to respond to, a collection of
information unless the collection of information displays a valid
control number.
List of Subjects in 31 CFR Part 515
Administrative practice and procedure, Banks, banking, Blocking of
assets, Cuba, Credit, Foreign trade, internet, Penalties, Reporting and
recordkeeping requirements, Sanctions, Services.
For the reasons set forth in the preamble, OFAC amends 31 CFR part
515 as follows:
PART 515--CUBAN ASSETS CONTROL REGULATIONS
0
1. The authority citation for part 515 continues to read as follows:
Authority: 22 U.S.C. 2370(a), 6001-6010, 7201-7211; 31 U.S.C.
321(b); 50 U.S.C. 4301-4341; Pub. L. 101-410, 104 Stat. 890 (28
U.S.C. 2461 note); 22 U.S.C. 6021-6091; Pub. L. 105-277, 112 Stat.
2681; Pub. L. 111-8, 123 Stat. 524; Pub. L. 111-117, 123 Stat. 3034;
E.O. 9989, 13 FR 4891, 3 CFR, 1943-1948 Comp., p. 748; Proc. 3447,
27 FR 1085, 3 CFR, 1959-1963 Comp., p. 157; E.O. 12854, 58 FR 36587,
3 CFR, 1993 Comp., p. 614.
Subpart B--Prohibitions
Sec. 515.209 [Amended]
0
2. Amend Sec. 515.209 in note 1 to the section by adding ``Sec.
515.584(d) relating to funds transfers or'' before the text ``Sec.
515.584(g)''.
Subpart C--General Definitions
0
3. Amend Sec. 515.340 by:
0
a. Revising the section heading;
0
b. In the introductory text, removing ``self-employed individual means
a Cuban national who is'' and adding in its place ``independent private
sector entrepreneur means a Cuban national who is not a prohibited
official of the Government of Cuba, as defined in Sec. 515.337, or a
prohibited member of the Cuban Communist Party, as defined in Sec.
515.338, and is'';
0
c. Revising and republishing paragraph (a);
0
d. In paragraph (c), removing the word ``or'' after the semicolon;
0
e. In paragraph (d), removing the period and adding in its place ``;
or''; and
0
f. Adding paragraph (e).
The revisions and addition read as follows:
Sec. 515.340 Independent private sector entrepreneur.
* * * * *
(a) An owner, including a self-employed individual
(cuentapropista), or employee of a small private business entity,
private cooperative, or a sole proprietorship located in Cuba, in each
case of up to 100 employees;
* * * * *
(e) A private cooperative or small private business entity located
in Cuba of up to 100 employees that is owned only by individuals
described in paragraphs (a) through (d) of this section.
Subpart D--Interpretations
Sec. 515.421 [Amended]
0
4. Amend Sec. 515.421 in paragraph (b)(2) by removing ``Cuban'' and
adding in its place ``private sector''.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
5. Amend Sec. 515.542 in paragraph (g) by:
0
a. Removing ``faxed to 202/622-6931 or mailed to the Office of Foreign
Assets Control, Attn: Regulatory Affairs Division, 1500 Pennsylvania
Avenue NW, Annex, Washington, DC 20220'' and adding in its place
``emailed to [email protected]''; and
0
b. Adding a sentence at the end of the paragraph.
The addition reads as follows:
Sec. 515.542 Mail and telecommunications-related transactions.
* * * * *
(g) * * * The reporting requirement in this paragraph (g) applies
only to the
[[Page 46325]]
non-banking institution entity subject to U.S. jurisdiction relying
upon paragraph (b), (c), or (d) of this section to provide
telecommunications services.
* * * * *
Sec. 515.565 [Amended]
0
6. Amend Sec. 515.565 in paragraph (a) introductory text by adding
``transactions, including'' after ``engage in''.
Sec. 515.570 [Amended]
0
7. Amend Sec. 515.570 in paragraph (g)(3) by:
0
a. Adding ``in Cuba, including farms of up to 100 employees'' after
``businesses''; and
0
b. Removing ``by self-employed individuals'' and adding in its place
``of Cuba by independent private sector entrepreneurs''.
0
8. Amend Sec. 515.578 by:
0
a. Revising paragraphs (a)(1) and (2);
0
b. In paragraph (a)(3):
0
i. Removing ``The'' at the beginning of the sentence and add in its
place ``To the extent not authorized by Sec. 515.533 or Sec. 515.560,
the''; and
0
ii. Removing ``(2)(i)-(iii)'' and add in its place ``(a)(2)''.
0
c. Redesignating Note to Sec. 515.578(b)(2) as Note 3 to Sec.
515.578(b)(2);
0
d. Revising paragraphs (d) and (e); and
0
e. Redesignating the note at the end of the section as Note 5 to Sec.
515.578.
The revisions read as follows:
Sec. 515.578 Exportation, reexportation, and importation of certain
internet-based services; importation of software.
(a) * * *
(1) Certain internet-based services. The exportation or
reexportation, directly or indirectly, from the United States or by a
person subject to U.S. jurisdiction to Cuba of the following services:
(i) Services incident to the exchange of communications over the
internet, such as instant messaging, chat and email, social networking,
sharing of photos and movies, web browsing, blogging, web hosting
provided that it is not for the promotion of tourism, domain name
registration services, social media platforms, collaboration platforms,
video conferencing, e-gaming and e-learning platforms, automated
translation, web maps, and user authentication services; and
(ii) Services to support the exchange of communications over the
internet, such as software design, business consulting, information
technology management services, and cloud-based services, to support
services described in paragraph (a)(1)(i) of this section.
(2) Services related to certain exportations and reexportations. To
the extent not authorized by Sec. 515.533, the exportation or
reexportation of services, including training, to install, repair, or
replace items related to communications, or items used to develop
software that improves the free flow of information or that will
support private sector activities in Cuba consistent with the export or
reexport licensing policy of the Department of Commerce, provided that
any such item subject to the Export Administration Regulations, 15 CFR
parts 730 through 774, is licensed or otherwise authorized by the
Department of Commerce for exportation or reexportation to Cuba.
* * * * *
(d) Software. The importation into the United States, and the
exportation or reexportation from the United States to third countries,
of Cuban-origin software is authorized.
(e) Mobile applications. (1) The importation into the United
States, and the exportation or reexportation from the United States to
third countries, of Cuban-origin mobile applications is authorized.
Note 4 to Sec. 515.578(e)(1): This paragraph (e)(1) does not
authorize U.S.-owned or -controlled firms in third countries to
import goods of Cuban origin into the authorized trade zone. See
Sec. 515.559.
(2) The employment of Cuban nationals to develop mobile
applications is authorized.
* * * * *
Sec. 515.582 [Amended]
0
9. Amend Sec. 515.582 by:
0
a. In the section heading and introductory text, removing ``Cuban'' and
adding in its place ``private sector''; and
0
b. In the introductory text, removing ``entrepreneurs as'' and adding
in its place ``entrepreneurs, as defined in Sec. 515.340. The list of
goods and services eligible for importation under this section is''.
0
10. Amend Sec. 515.584 by:
0
a. In paragraph (d), removing ``reject'' and adding in its place
``process'';
0
b. In paragraph (e), in the first sentence, adding ``paragraph (d) of
this section,'' after ``processed pursuant to'' and adding a comma
after ``Sec. 515.562(b)'';
0
c. Adding a heading to paragraph (h) and redesignating the text of
paragraph (h) as paragraph (h)(1); and
0
d. Adding paragraph (h)(2).
The additions read as follows:
Sec. 515.584 Certain financial transactions involving Cuba.
* * * * *
(h) Opening and maintaining bank accounts for certain Cuban
nationals. * * *
(2) Any banking institution, as defined in Sec. 515.314, that is a
person subject to U.S. jurisdiction is authorized to open and maintain
accounts solely in the name of a Cuban national who is an independent
private sector entrepreneur, as defined in Sec. 515.340, for the
purposes of conducting transactions authorized pursuant to, or exempt
from the prohibitions of, this part.
Bradley T. Smith,
Director, Office of Foreign Assets Control.
[FR Doc. 2024-11618 Filed 5-28-24; 8:45 am]
BILLING CODE 4810-AL-P
